Financial Terms Glossary...

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NADA Book

Used car, truck, and RV and motorcycle price guide found in the loan department that gives present-day value of vehicles.

 

National Credit Union Administration (NCUA)Federal agency that regulates and examines credit unions.National Credit Union Share Insurance Fund (NCUSIF)The federal share insurance fund for credit unions. The fund protects credit union members’ combined share accounts up to $250,000 and Individual Retirement Accounts separately up to $250,000. The fund is regulated by the National Credit Union Administration (NCUA), an agency of the federal government.

 

Natural-person Credit Union

Chartered by the federal or state government and includes real persons, i.e. non-corporate entities, as its members. More than 99 percent of all federally insured credit unions are natural persons cooperatives.

 

Negotiable Instrument
Unconditional order or promise to pay an amount of money that can be easily transferable from one person to another.

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Origination Fee (Loan)
The additional amount or fee charged upfront as part of the loan agreement. There are two kinds of loan origination fees. One is fixed dollar or percentage of the loan amount, sometimes charged instead of application or appraisal fees, but is usually a separate charge. The other origination fee is called a loan discount fee or points. The additional amount is paid upfront in order to get a lower interest rate.


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Par Value
The dollar equivalent of a share required to join a credit union. Par value is determined by the board and typically ranges from

$5 to $25. The share amount is a deposit.

 

Prepayment

Paying off a loan in part or in whole before it is due.

 

Primary Financial Institution (PFI)
The financial institution where the member conducts most of their financial business. The PYI is usually the institution where the consumer/member has their primary checking account and other PFI services, such as auto and/or real estate loans (mortgages and/or home equity) and online banking. However, it is the institution the consumer/member considers their PFI.

 

Privacy Policy
The stated policy and restrictions on the management and release of a member’s personal and financial information by the credit union.

 

Promissory Note
A legal document signed by the borrower that lists the conditions under which the money is borrowed as well as the terms under which it must be repaid.